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Financial Modeling Quick Lesson: Building a Discounted Cash Flow (DCF) Model - Part 1
 
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Learn the building blocks of a simple one-page discounted cash flow (DCF) model consistent with the best practices you would find in investment banking. If you are preparing for investment banking interviews, know that the DCF is the source of a TON of investment banking interview questions. To download the backup Excel file, go to www.wallstreetprep.com/blog/financial-modeling-quick-lesson-building-a-discounted-cash-flow-dcf-model-part-1/ The DCF modeled here is a simplified version of a fully-integrated DCF model. For a deeper dive into DCF modeling in Excel, please visit www.wallstreetprep.com.
Views: 379856 Wall Street Prep
Investment Banking 101: Operating Model
 
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In this episode of the financial modelling series Sergey, ex-Goldman Sachs investment banker, will describe how to build an operating model for a start-up company with the step-by-step financial modelling guide. 00:47 income statement assumptions total revenue cost of goods sold research & development sales & marketing general & administrative expenses other expenses 26:00 balance sheet assumptions operating assets operating liabilities capex & depreciation schedule other assumptions 37:35 income statement revenue gross profit operating expenses operating income ( EBIT) prfoit before taxes net income 49:10 balance sheet assets liabilities & shareholders equity 01:04:08 cash flow statement cash flow from operating activities Original Excel file with financial model can be found here: https://goo.gl/QScJgJ Our Investment Banking preparation course https://youtu.be/bBMmN8Cmq3g WANT TO GET INTO INVESTMENT BANKING? Join Sergey's course on Investment Banking Interview Prep https://edu.fless.pro/investment-banking-interview-prep-course SUBSCRIBE AND STAY WITH US! FLESS https://fless.pro Instagram https://www.instagram.com/flesspro Facebook https://www.facebook.com/flesspro VK https://vk.com/flesspro Telegram https://t.me/flesspro
Views: 7069 Fless
What is Financial Modeling?
 
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Financial modeling is one of the most highly valued but thinly understood skills in finance. The objective is to combine accounting, finance, and business metrics to create an abstract representation of a company in Excel, forecasted into the future. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/modeling/financial-modeling-for-beginners/
Excel Shortcuts Investment Banking: Quick Tips
 
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You’ll get a quick, but very powerful, tip on how to optimize your Excel setup with the Quick Access Toolbar (QAT) and custom shortcuts in this tutorial. These tips will save you a ton of time when creating valuations, organizing data, and doing any formatting exercise. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Shortcuts Introduced: These are all BUILT-IN shortcuts: Alt, T, O: Options Menu Alt, H, FC: Font Color Alt, H, FS: Font Size Alt, H, H: Fill Color Alt, H, A, C: Center Alt, H, B: Borders Alt, H, O, I: AutoFit Column Width Alt, H, O, W: Column Width Alt, H, 0: Increase Decimal Places Alt, H, 9: Decrease Decimal Places These are the NEW shortcuts you can create via the Quick Access Toolbar: Alt, 1: Font Color Alt, 2: Font Size Alt, 3: Fill Color Alt, 4: Center Alt, 5: Borders Alt, 6: AutoFit Column Width Alt, 7: Column Width Alt, 8: Increase Decimal Places Alt, 9: Decrease Decimal Places Lesson Outline: Many Excel shortcuts that you use repeatedly when creating valuations, models and when formatting data are cumbersome to enter. Something as simple as changing the font color takes 4 keystrokes – Alt, H, F, C – if you use the built-in method for it. Other common commands such as alignment, fill colors, borders, and column widths also take 3-4 keystrokes. A more efficient alternative is to set up the Quick Access Toolbar (QAT) so that you can access the most common commands with shortcuts like Alt, 1 instead. You can either import our file (see the link below under RESOURCES) or go to the Options menu (Alt, T, O) and then the Quick Access Toolbar tab, and create the menu yourself. We recommend setting “Font Color” in position #1, followed by Font Size, Fill Color, Center, Borders, AutoFit Column Width, Column Width, and Increase and Decrease Decimal places. These are some of the most frequently used commands in Excel, and you’ll save a ton of time with the new, shorter versions. A command like AutoFit Column Width that used to take 4 keystrokes now takes only 2 (Alt, 6) with this approach. You might realize 30-40% time savings when working in Excel if you use this full set of shortcuts. They’re especially useful for formatting and analyzing data and doing the initial setup in financial models. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Excel-QAT-Export.exportedUI https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Excel-Shortcuts-Investment-Banking-Slides.pdf
Mergers & Acquisitions (M&A) Model
 
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The purpose of this model is to value a target business and determine how much to pay for an acquisition. The model also compares cash vs. share consideration, evaluates synergies and takeover premiums while assessing the net impact of the acquisition.
Investment Banking Interview (2019) - Questions and Answers
 
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Subscribe Now For More Content - Back on the 10th of June 2019 --- In this video we will go over what you can expect during your investment banking interviews, we will cover specific questions as well as ideal answers to help you ace your interviews and land the job. Only 2% of applicants are successful in their investment banking recruitment and a large proportion of candidates fail there interviews over simple questions. In this video I will show you what questions you need to prepare for, most will be surprised by the level of knowledge you will need, hence why only 2% are successful every year. Investment Banking Interviews are broken into two parts Behavioural & technical questions. To be successful you will need to ace both sets of questions regardless of your background. Behavioural / Competency questions are designed to see how you cope under pressure and to see how well you know about the industry and the life of an investment banker. Theses questions are often overlooked but if you get one of these questions wrong then you might as well just walk out of the interview room. Technical questions are broken into the following 1) Basic Accounting 2) Finance 3) Financial Valuation 4) M&A 5) LBO 6) Brain teasers
Views: 8686 High Finance Graduate
Simple LBO Model - Case Study and Tutorial
 
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In this LBO Model tutorial, you'll learn how to build a very simple LBO model "on paper" that you can use to answer quick questions in PE (and other) interviews. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" This matters because in many cases, they'll ask you to calculate numbers such as IRR and multiple of invested capital very quickly and will not actually ask you to build a more complex model until later in the process. You should always START this exercise by looking at the actual question or set of questions they are asking you: "Calculate the purchase price required for ABC Capital to obtain a 3.0x multiple of invested capital (MOIC) if it plans to sell OpCo after five years at an EV / EBITDA multiple of 6.0x." So they're giving you the exit multiple and the return on investment that the PE firm is targeting, and you have to figure out the initial purchase price by "working backwards." Here's how we interpret each line in this case study and use it in the model: "OpCo currently has EBITDA of $250mm, and ABC believes that the new management team could keep EBITDA flat for the next 5 years." This tells you to make the initial EBITDA $250mm and keep it at that level for 5 years - skip revenue, COGS, OpEx, and everything else because none of that matters if this is all they give you. "ABC Capital has obtained debt financing of $750mm at 10% interest, and OpCo expects working capital to be a source of funds at $6mm per year." The initial debt balance is $750mm and there's a 10% interest rate, so the interest expense will be $75mm per year. In the "Cash Flow Statement Adjustments", since Working Capital is a SOURCE of funds it will add $6mm to cash flow each year. "OpCo requires capital expenditures of $35mm per year, and it has a tax rate of 40%. Assume no transaction fees, zero minimum cash required, and that PP&E on the balance sheet remains constant for the next 5 years." Also in the CFS section, CapEx = $35mm per year, and Depreciation also equals $35mm per year since the PP&E balance does not change at all. So you can also fill in the Depreciation figure on the Income Statement. No transaction fees and no minimum cash requirement simplify the purchase price and debt repayment - although we don't even have debt repayment here. "Assume that excess cash is NOT used to repay debt, and instead simply accumulates on the Balance Sheet." This makes the final numbers easier to calculate, since interest expense will never change and you can simply add up cash generated to get to the final cash number at the end. PROCESS: 1. Start with the Income Statement - EBITDA is $250mm per year. Subtract Depreciation of $35mm per year, and interest of $75mm per year. So EBIT = $140mm. Taxes = $140mm * 40%, so Net Income = $140mm - $56mm = $84mm. 2. On the simplified CFS, Net Income = $84mm, Depreciation = $35mm, Change in Working Capital = $6mm, CapEx = ($35mm), so Cash Generated per year = $90mm. 3. EBITDA Exit Multiple = 6.0x, and final year EBITDA = $250mm, so Exit EV = $1.5B. Subtract the outstanding debt of $750mm and add the cash generated in this period of $450mm, so Equity Proceeds = $1.2B. 4. Targeted MOIC = 3.0x so the PE firm would have to invest $400mm in the beginning. $400mm equity + $750mm debt = $1.150B, so the purchase multiple is $1,150 / $250 = 4.6x. Further Resources http://youtube-breakingintowallstreet-com.s3.amazonaws.com/109-04-Simple-LBO-Model.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/109-04-Simple-LBO-Model.xlsx
What is Financial Modeling by Reshma - Imarticus Learning
 
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Know more on Financial Modeling based on Benefits, Job Roles, Advantages, Salary and Careers. Imarticus Learning is India’s leading professional education institute, offering certified industry-endorsed training in Financial Services, Investment Banking, Business Analysis, IT, Business Analytics & Wealth Management. Visit: http://www.imarticus.org
Views: 7615 Imarticus Learning
Valuation and Discounted Cash Flow Analysis (DCF)
 
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Here's a quick overview on Valuation. We also construct an entire discounted cash flow analysis on WalMart in conjunction with my book Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity http://www.amazon.com/Financial-Modeling-Valuation-Practical-Investment/dp/1118558766/ref=sr_1_8?ie=UTF8&qid=1422553204&sr=8-8&keywords=valuation
Views: 89963 Paul Pignataro
Walk me through a DCF? (NEW) | Interview Answer
 
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Subscribe Now For More Content - Back on the 10th of June 2019 ___ 🔥Don't forget to Subscribe, Like and Share this video🔥 Walk me through a DCF is a very common investment banking interview question, in fact, your almost guaranteed to get asked it during your interviews. In this video I will show you how to fully answer this question and more by providing insights into how a real DFC is performed by investment banking analyst. By using this answer you will impress your interviewer.
Views: 5356 High Finance Graduate
WACC, Cost of Equity, and Cost of Debt in a DCF
 
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In this WACC and Cost of Equity tutorial, you'll learn how changes to assumptions in a DCF impact variables like the Cost of Equity, Cost of Debt. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn about WACC (Weighted Average Cost of Capital) - and why it is not always so straightforward to answer these questions in interviews. Table of Contents: 2:22 Why Everything is Interrelated 4:22 Summary of Factors That Impact a DCF 6:37 Changes to Debt Percentages in the Capital Structure 11:38 The Risk-Free Rate, Equity Risk Premium, and Beta 12:49 The Tax Rate 14:55 Recap and Summary Why Do WACC, the Cost of Equity, and the Cost of Debt Matter? This is a VERY common interview question: "If a company goes from 10% debt to 30% debt, does its WACC increase or decrease?" "What if the Risk-Free Rate changes? How is everything else impacted?" "What if the company is bigger / smaller?" Plus, you need to use these concepts on the job all the time when valuing companies… these "costs" represent your opportunity cost from investing in a specific company, and you use them to evaluate that company's cash flows and determine how much the company is worth to you. EX: If you can get a 10% yield by investing in other, similar companies in this market, you'd evaluate this company's cash flows against that 10% "discount rate"… …and if this company's debt, tax rate, or overall size changes, you better know how the discount rate also changes! It could easily change the company's value to you, the investor. The Most Important Concept… Everything is interrelated - in other words, more debt will impact BOTH the equity AND the debt investors! Why? Because additional leverage makes the company riskier for everyone involved. The chance of bankruptcy is higher, so the "cost" even to the equity investors increases. AND: Other variables like the Risk-Free Rate will end up impacting everything, including Cost of Equity and Cost of Debt, because both of them are tied to overall interest rates on "safe" government bonds. Tricky: Some changes only make an impact when a company actually has debt (changes to the tax rate), and you can't always predict how the value derived from a DCF will change in response to this. Changes to the DCF Analysis and the Impact on Cost of Equity, Cost of Debt, WACC, and Implied Value: Smaller Company: Cost of Debt, Equity, and WACC are all higher. Bigger Company: Cost of Debt, Equity, and WACC are all lower. * Assuming the same capital structure percentages - if the capital structure is NOT the same, this could go either way. Emerging Market: Cost of Debt, Equity, and WACC are all higher. No Debt to Some Debt: Cost of Equity and Cost of Debt are higher. WACC is lower at first, but eventually higher. Some Debt to No Debt: Cost of Equity and Cost of Debt are lower. It's impossible to say how WACC changes because it depends on where you are in the "U-shaped curve" - if you're above the debt % that minimizes WACC, WACC will decrease. Otherwise, if you're at that minimum or below it, WACC will increase. Higher Risk-Free Rate: Cost of Equity, Debt, and WACC are all higher; they're all lower with a lower Risk-Free Rate. Higher Equity Risk Premium and Higher Beta: Cost of Equity is higher, and so is WACC; Cost of Debt doesn't change in a predictable way in response to these. When these are lower, Cost of Equity and WACC are both lower. Higher Tax Rate: Cost of Equity, Debt, and WACC are all lower; they're higher when the tax rate is lower. ** Assumes the company has debt - if it does not, taxes don't make an impact because there is no tax benefit to interest paid on debt.
How Are The Three Financial Statements Linked? - Mock IB Question
 
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Mock Investment Banking Interview Questions; - How are the three financial statements linked? - How will a $10 depreciation charge impact the three financial statements Key Takeaway - Start with the income statement, move onto the cash flow statement, and then end with the balance sheet. Practice as much as you can before the interview. Good luck! If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories. http://seekingalpha.com/author/robert-bezede/articles#regular_articles
Views: 24825 FinanceKid
Revenue Models for Consumer Retail Companies
 
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In this Revenue Models lesson, you'll learn how to build a revenue model for a consumer retail company. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Chuck E. Cheese, a kids' restaurant chain that was acquired by Apollo for $1.3 billion, is used in this example since their data is readily available and easy to use Table of Contents: 0:39 Why Revenue Models Are Important 2:19 How to Set Up Revenue Models - Units Sold and Market Size Methods 3:39 How You Build a Revenue Model - Examples for Different Industries 5:03 Step 1 - Finding Historical Data 5:59 Step 2 - Assumptions for Stores Opened and Closed 8:02 Step 3 - Assumptions for Sales per Store Growth 9:03 Step 4 - Calculating Ending Stores per Year 10:30 Step 5 - Toggle Calculations for Sales per Store 11:08 Step 6 - Splitting Revenue Into Segments 14:20 Step 7 - How to Review and Tweak the Numbers 15:18 Recap and Summary Why Do Revenue Models Matter? It's a very common topic in case studies and interviews in IB, PE, HFs, and anything else in finance. Revenue models can come up in LBO case studies, 3-statement modeling case studies, normal interview questions, and, of course, on the job. Often, you have enough data to make MORE than just a simple % growth rate assumption for revenue... but not enough data to do the same on the expense side. Theoretically, you could just say 2%, 3%, 4%, etc. growth each year and project revenue like that. BUT it's much more credible to say, "We have 50 stores each generating $2 million in annual sales, on average, and we plan to open 5 new stores per year for the next 5 years -- based on that, revenue is expected to be..." rather than "We're assuming 4% revenue growth per year." The numbers you get will NOT necessarily be different or "more accurate" -- you're still predicting the future! But at least your numbers will have more real-world support behind them... What is a Revenue Model? It can be done many different ways, but most revenue models boil down to Units Sold * Average Selling Price, or Total Market Size * % Market Share. The best method depends on the available data, the work and research you've done, and what the company discloses. For this consumer/retail example, it makes the most sense to use a variation on Units Sold * Average Selling Price, since "market share" is almost impossible to establish for a large and fragmented market like restaurants. How Do You Build a Revenue Model? For retailers, you can divide revenue into into existing stores vs. new stores and assume a figure for average Sales per Square Foot/Meter, or Sales per Store, and then make assumptions for new stores opened, stores closed, and how the sales per store figures change over time. Here's what we cover in this example for Chuck E. Cheese: Step 1: Get the historical data you need -- in this case, the # of stores opened and closed in prior years, and the average sales per store type. These are all taken from the company's filings. Step 2: Make assumptions for the # of stores opened and closed each year -- companies often disclose their plans in their filings, or you can extrapolate from historical data. In this case, CEC told us directly how many stores it planned to open over the next 4 years. Step 3: Assume a growth rate in Sales per Comparable (Existing) Store, and Sales per New Store. Step 4: Calculate Ending Stores each year, with support for the sensitivity toggles built in so that we can easily modify the assumptions. Step 5: Now, make similar "post-toggle" calculations for Sales per New Store and Sales per Existing Store. Step 6: Now, divide the revenue into segments, if applicable... it is very much applicable here! There are different margins for entertainment vs. food and beverages, and there's a clear trend in one direction (away from food and beverages). Step 7: Now, go back and check your numbers, fill in the miscellaneous and smaller items, and see how equity research estimates (and other sources) compare to what you've come up with. Go back and tweak your numbers as necessary. What Next? Pick a company you're interested in, in an industry that's relatively easy to analyze, and project revenue based on what's in their filings. It doesn't have to be super-complicated -- for most companies, revenue comes down to less than 5 key drivers. Avoid conglomerates, companies with tons of business lines, or industries that are more complex, such as oil & gas, commercial banking, etc. Suggestions: Airlines, technology, consumer/retail, industrials/manufacturing, healthcare is iffy because it can get very complex to model a company with a huge drug portfolio. Further Resources http://youtube-breakingintowallstreet-com.s3.amazonaws.com/CEC-Revenue-Model.xlsx
IB Case Studies: 3-Statement Modeling Test
 
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Get the files and resources here: http://www.mergersandinquisitions.com/3-statement-model-case-study/ https://samples-breakingintowallstreet-com.s3.amazonaws.com/IBIG-06-01-Three-Statements-30-Minutes-Blank.xlsx https://samples-breakingintowallstreet-com.s3.amazonaws.com/IBIG-06-01-Three-Statements-30-Minutes-Complete.xlsx Table of Contents: 3:34 Step 1: Fill Out All the Assumptions (if possible) 11:34 Step 2: Fill Out the Entire Income Statement 13:49 Step 3: Fill Out What You Can of the Balance Sheet 16:03 Step 4: Fill Out the Entire Cash Flow Statement 20:35 Step 5: Finish Linking the Balance Sheet 23:25 Step 6: Check Your Work and Answer the Questions 24:42 Recap and Summary
Investment Banking 101 : DCF Model
 
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Sergey concludes the modelling course by building discounted cash flow model. Some steps are omitted. Please watch previous videos to understand the context: - Operating model: https://youtu.be/nmTjzMsLAZM - Projections: https://youtu.be/Ral1n1rfjnE Subscribe and learn more! FLESS https://fless.pro Instagram https://www.instagram.com/flesspro Facebook https://www.facebook.com/flesspro VK https://vk.com/flesspro Telegram https://t.me/flesspro
Views: 3562 Fless
Watch Me Model a Real Estate Private Equity Technical Interview Exercise in Excel
 
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Warning: This video is long and boring! But, if you're preparing for a real estate technical interview, you'll likely find value in it. Watch me complete what is an actual real estate private equity modeling test. Download the Excel file and follow along (see notes below for edits). To download the Excel file that goes along with this video (both the finished version as well as a blank tab to follow along), visit: https://www.adventuresincre.com/watch-me-model-real-estate-technical-interview/ To learn more about the author: http://www.SpencerBurton.org A Couple of Notes/Corrections: At 21:20, the formula for the Loan Cash Flow should be Total Project Costs (row 22) minus Equity (row 26), not row 20 minus row 26. This error was fixed around the 26:00 mark, but was not made clear. The formula in C21 that sums all Construction Interest for the entire development period [=SUM(G21:CR21)] got zeroed out somehow. I didn't realize this had happened until the 1:00:00 minute mark, when I saw my Levered Cash Flow line had equity contributions beyond when I'd expect. Adding the formula in C21 back, corrected the issue.
Views: 33936 Spencer Burton
Investment Banking Interview Question: Financial Statements
 
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Joshua Rosenbaum and Joshua Pearl, authors of the highly acclaimed and authoritative textbook, Investment Banking, walk through how to answer technical questions asked during the investment banking interview process. Learn with the pros: https://www.efficientlearning.com/ib Don't guess what it takes to ace your interview and and answer questions including "How do the three main financial statements link together?" Access additional lecture videos and practice questions with a 14 day free trial of Wiley's Investment Banking Prep course: https://www.efficientlearning.com/investment-banking/products/free-trial/
Views: 57239 Wiley Finance
Mining Financial Modeling & Valuation Course - Tutorial | Corporate Finance Institute
 
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Mining Financial Modeling & Valuation Course - Tutorial | Corporate Finance Institute Enroll in our Full Course to earn a certificate and advance your career: http://courses.corporatefinanceinstitute.com/courses/mining-industry-financial-model-valuation Master the art of building a financial model for a mining asset, complete with assumptions, financials, valuation, sensitivity analysis, and output charts. In this course we will work through a case study of a real mining asset by pulling information from the Feasibility Study, inputting it into Excel, building a forecast, and valuing the asset. -- FREE COURSES & CERTIFICATES -- Enroll in our FREE online courses and earn industry-recognized certificates to advance your career: ► Introduction to Corporate Finance: https://courses.corporatefinanceinstitute.com/courses/introduction-to-corporate-finance ► Excel Crash Course: https://courses.corporatefinanceinstitute.com/courses/free-excel-crash-course-for-finance ► Accounting Fundamentals: https://courses.corporatefinanceinstitute.com/courses/learn-accounting-fundamentals-corporate-finance ► Reading Financial Statements: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course ► Fixed Income Fundamentals: https://courses.corporatefinanceinstitute.com/courses/introduction-to-fixed-income -- ABOUT CORPORATE FINANCE INSTITUTE -- CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world. By taking our courses you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical with step-by-step instructions to help you become a first class financial analyst. Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections -- JOIN US ON SOCIAL MEDIA -- LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi- Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi Instagram: https://www.instagram.com/corporatefinanceinstitute Google+: https://plus.google.com/+Corporatefinanceinstitute-CFI YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
Excel Crash Course for Finance Professionals - FREE | Corporate Finance Institute
 
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Excel Crash Course for Finance Professionals - FREE | Corporate Finance Institute Enroll in the FREE full course to earn your certification and advance your career: http://courses.corporatefinanceinstitute.com/courses/excel-crash-course-for-finance The ultimate Excel crash course for finance professionals. Learn all the Excel tips, tricks, shortcuts, formulas and functions you need for financial modeling in this free online course. Key concepts include: formatting, ribbon shortcuts, if statements, eomonth, year, paste special, fill right, fill down, auto sum, sumproduct, iferror, today(), concatenate, special numbers, vlookup, index, match, xirr, xnpv, yearfrac, and much more. -- FREE COURSES & CERTIFICATES -- Enroll in our FREE online courses and earn industry-recognized certificates to advance your career: ► Introduction to Corporate Finance: https://courses.corporatefinanceinstitute.com/courses/introduction-to-corporate-finance ► Excel Crash Course: https://courses.corporatefinanceinstitute.com/courses/free-excel-crash-course-for-finance ► Accounting Fundamentals: https://courses.corporatefinanceinstitute.com/courses/learn-accounting-fundamentals-corporate-finance ► Reading Financial Statements: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course ► Fixed Income Fundamentals: https://courses.corporatefinanceinstitute.com/courses/introduction-to-fixed-income -- ABOUT CORPORATE FINANCE INSTITUTE -- CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world. By taking our courses you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical with step-by-step instructions to help you become a first class financial analyst. Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections -- JOIN US ON SOCIAL MEDIA -- LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi- Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi Instagram: https://www.instagram.com/corporatefinanceinstitute Google+: https://plus.google.com/+Corporatefinanceinstitute-CFI YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
What is Real Estate Financial Modeling? (21:52)
 
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In this tutorial, you’ll learn what real estate financial modeling is, how we use it to make investment decisions, and you’ll see examples of simple acquisition and development models and the step-by-step process that applies to both of them. https://www.mergersandinquisitions.com/real-estate-pro-forma/ https://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:18 Part 1: What is the Point of Real Estate Financial Modeling? 3:09 Part 2: Types of Deals, Properties, and Models 7:19 Part 3: Example of an Acquisition Model 12:50 Renovation Model Differences 15:42 Part 4: Example of a Development Model 20:19 Recap and Summary In real estate financial modeling, you analyze a property from the perspective of an Equity Investor (owner) or Debt Investor (Lender) and determine whether or not the Equity or Debt Investor should invest, based on the risks and potential returns. For example, if you buy a multifamily property for $50 million and hold it for 5 years, could you earn a 12% annualized return on it? Is that range of returns (10 – 15%) plausible? Types of Deals, Properties, and Models There are three main ways you can invest in properties: Way #1: Acquire an existing property, change little to nothing, and sell it – this is Acquisition Modeling. Way #2: Acquire an existing property, change it significantly, and sell it – this is Renovation Modeling. Way #3: Buy land, pay to develop a new property, find tenants, and then sell the property when it stabilizes – this is Development Modeling. And then there are several different categories of properties. The first category is office, industrial, and retail properties, which have businesses as customers and tend to have long-term leases with highly variable terms. On the opposite end are hotels, where guests only stay a few nights, and where financial modeling is much closer to what you do for normal companies. In the middle are multifamily properties, with 1-year leases that have very similar terms, and condominiums, which are often pre-sold to individuals and owned by individuals. The Step-by-Step Process to Real Estate Financial Modeling Step 1: Set up the Transaction Assumptions, including the property size, price or development costs, and exit details. Step 2: For development models, project the Construction Period and draw on Debt and Equity over time to fund the development. Step 3: Build the Operating Assumptions, which could be high-level or very granular depending on the property type. Step 4: Build the Pro-Forma, including NOI, Adjusted NOI, Debt Service, and Cash Flow to Equity. Step 5: Make the Returns Calculations, including the initial investment(s), cash flows over time, exit, and debt repayment. Step 6: Make an Investment Decision based on your criteria and the model output in different cases. In the acquisition model, we apply these steps by setting the property’s size based on number of units and average square feet per unit and setting a price based on a Cap Rate. Debt is based on the purchase price times the LTV. The operating assumptions are very high-level and linked to per-unit and per-square-foot figures since the individual leases are so similar. We assume rental growth, a reduced discount to market rates, and increases in reimbursement rates and the vacancy rate over time, along with minor upgrades. The Pro-Forma is fairly standard and starts with Base Rental Income, makes deductions and adjustments, deducts expenses, and ends with NOI, Adjusted NOI, and Cash Flow to Equity. We then calculate the IRR and multiple and conclude that we’d need to analyze this in different cases and stress test it a bit more. A 15% IRR is quite good for a stabilized property, but we don’t know how well it holds up in downside scenarios. In the development model example, we purchase land upfront and estimate the construction costs. During the construction period, we distribute the land and construction costs over time, draw on Equity first to pay for them, then switch to Debt, and we capitalize interest and loan fees during the period. The operating assumptions are based on tenant-by-tenant numbers since there are only two tenants. The Pro-Forma is fairly standard, but the refinancing is a bit tricky since we need to get the property’s value a year after it takes place and then discount it back one year based on a 15% Discount Rate to determine the Permanent Loan amount. In the Returns Calculations, we factor in upfront Equity draws, the refinancing, cash flows to equity, excess land sale, and exit and debt repayment at the end. This one is probably a “no” since we just barely reach the 20% IRR in the base case, and we purchase too much land in the beginning. The waterfall structure also works against us.
How to Build a Financial Model in Excel - Tutorial | Corporate Finance Institute
 
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How to Build a Financial Model in Excel - Tutorial | Corporate Finance Institute Learn how to build a financial model in Excel with our video course (part 1). Enroll in the FULL course to earn your certificate and advance your degree: http://www.corporatefinanceinstitute.com In this course you will learn to build a financial model from scratch by working in Excel and following along with the video. Upon successfully completing the course and all quizzes you will obtain your Financial Modeling Certificate from the Corporate Finance Institute. -- FREE COURSES & CERTIFICATES -- Enroll in our FREE online courses and earn industry-recognized certificates to advance your career: ► Introduction to Corporate Finance: https://courses.corporatefinanceinstitute.com/courses/introduction-to-corporate-finance ► Excel Crash Course: https://courses.corporatefinanceinstitute.com/courses/free-excel-crash-course-for-finance ► Accounting Fundamentals: https://courses.corporatefinanceinstitute.com/courses/learn-accounting-fundamentals-corporate-finance ► Reading Financial Statements: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course ► Fixed Income Fundamentals: https://courses.corporatefinanceinstitute.com/courses/introduction-to-fixed-income -- ABOUT CORPORATE FINANCE INSTITUTE -- CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world. By taking our courses you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical with step-by-step instructions to help you become a first class financial analyst. Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections -- JOIN US ON SOCIAL MEDIA -- LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi- Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi Instagram: https://www.instagram.com/corporatefinanceinstitute Google+: https://plus.google.com/+Corporatefinanceinstitute-CFI YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
Investment Banking Training    Financial Modeling and Valuation
 
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Global Investment Banking Analyst/Associate Program Location: London or Remote/Web Video Conferencing The Global Investment Banking Program is an exciting opportunity to gain experience of real world transactions and working knowledge for Investment Banking, Private Equity and Hedge Fund careers. The program will give you solid understanding of transaction concepts and robust practical skills for extensive investment banking work experience. The 5-week program provides the following real world experience: • Analysis of London stock exchange and New York stock exchange listed companies • Preparation of buy and sell side transaction pitches, teasers, and writing confidential investment memo • Excel Financial modeling and valuation of public listed companies by using "Comparable comps" method • Excel Financial modeling and valuation of public listed companies by using " Discounted cash flow" method • Excel Financial modeling and determination of the premium paid by buyer of the business by using "Transaction comps" method • Excel Financial modeling and leveraged buyout of the company by a Private Equity sponsor • Preparation of M&A transaction-ready model with Accretion/Dilution analysis of the deal • Board presentation and closing of investment banking transactions Upon completion of the program you will be prepared to carry out responsibilities of a full-time Analyst/Associate in investment banks and private equity firms. The program statement on your CV and your work experience reference report will enable you to stand out from thousands of other candidates and ensure that you are a strong contender in one the most competitive industries in the world. How to apply: Please send your CV to [email protected] Please note that a placement fee applies
Views: 15383 Global Banking School
Discounted Cash Flow (DCF) Model – CH 3 Investment Banking Valuation Rosenbaum
 
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The discount cash flow analysis (DCF) is a fundamental valuation methodology broadly used by investment bankers, corporate officers, and other finance professionals. It is based on the principal that the value of a company can be derived from the PV of its projected free cash flow (FCF). While many videos cover the actual framework and how to build the excel model, the assumptions and thinking behind the model are often left to more “real world” examples. This is that example! Chapter 3 covered topics like; - How do you project revenues for a DCF model? - How many years do you project cashflows for? - What is the exit multiple method? - What is the perpetuity growth method? - How do you project EBITDA for a DCF model? - How do you project EBIT for a DCF model? - How do you project the NWC for a DCF model? - What is the mid-year convention? - How do you calculate unlevered free cash flow? For those who are interested in buying the Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Joshua Rosenbaum and Joshua Pearl, follow the Amazon link below; https://www.amazon.ca/Investment-Banking-Valuation-Leveraged-Acquisitions/dp/1118656210 If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories. http://seekingalpha.com/author/robert-bezede/articles#regular_articles Videos referenced; Estimating Cost of Debt For WACC: https://www.youtube.com/watch?v=CSkPlxEe-dY Estimating Cost Of Equity For WACC: https://www.youtube.com/watch?v=ZigyWoDAMrE Projecting NWC; https://www.youtube.com/watch?v=2E1Hca2dVbI Why Is Your DCF Model Incorrect? https://www.youtube.com/watch?v=ByyK0AMuLxc
Views: 9770 FinanceKid
Financial Modeling Quick Lesson: Cash Flow Statement (Part 1)
 
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Learn the building blocks of a financial model. In this video, we'll build a cash flow statement given an income statement and balance sheet in Excel. To download the Excel template that goes with this video, go to http://www.wallstreetprep.com/blog/financial-modeling-quick-lesson-cash-flow-statement-part-1/ The accounting here is a simplified presentation of how the three major financial statements are inter-related and lays the foundation of financial statement models in investment banking. Many accounting questions that we see time and again in finance interviews are designed to test the understanding explained in this exercise.
Views: 390784 Wall Street Prep
Investment Banking 101 : Projections
 
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In this episode of the financial modelling series Sergey explains how to create financial projections for your start-up company. To learn about Sergey's IB interview prep course follow the link: http://edu.fless.pro/investment-banking-interview-prep-eng Subscribe and stay with us! FLESS https://fless.pro Instagram https://www.instagram.com/flesspro Facebook https://www.facebook.com/flesspro VK https://vk.com/flesspro Telegram https://t.me/flesspro
Views: 4167 Fless
Excel Tutorial - How to Color Code Financial Models
 
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This will cover how to color code your financial models so that hard-coded numbers and constants are in blue, formulas and text are in black. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You will also learn how to make the links to other worksheets show up in green. In addition to a simple method using the F5 shortcut key to jump to different cell types, you'll also learn how to use VBA code to accomplish this in a more elegant way that checks for different cases. Here's an outline of what we cover in the lesson, along with the shortcuts used and the VBA code that you can use in your own models and spreadsheets: Why is Color Coding Important? Makes it easy to see at a glance what is a formula vs. constant vs. text vs. link to other workbook or worksheet. Standards vary between different groups and firms, but you almost always see the following: Blue = Constants / hard-coded numbers. Black = Formulas and text. Green = Links to other worksheets. Blue w/ yellow background and border = Input cell. (This one is less important) Excel Shortcuts for Finding Different Cell Types: F5 Jump to Cell (PC / Mac) F5, Alt + S + O + X Highlight Constants (PC) F5, Alt + S + F + X Highlight Formulas (PC) F5, ⌘ + S, ⌘ + O Highlight Constants (Mac) F5, ⌘ + S, ⌘ + F Highlight Formulas (Mac) Alt + H + FC Font Color Alt + H + H Cell Fill Color On the Mac, you'll have to use CMD + 1 to access font and fill colors instead. Ctrl + F Find (PC) CMD + F Find (Mac) F2 Edit Cell (PC) Ctrl + U Edit Cell (Mac) How to Find Links to Other Worksheets / Workbooks: Highlight formulas and... Search for "!" but not 100% accurate, since hard-coded text might also have it. And sometimes, a formula might have "!" but is NOT just a direct link elsewhere - it might just use a link from another worksheet IN a formula instead. Better Solution - If You're Comfortable with VBA: Please see the Excel file at this link below - YouTube does not allow us to upload VBA code because of some of the characters included in the code. So you can get the full macro and the VBA code from the Excel file below: http://youtube-breakingintowallstreet-com.s3.amazonaws.com/Excel-Color-Code-Financial-Models.xlsm
Role of Financial Modeling in developing finance career
 
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Meet Mr. Siddharth Goenka, one of our esteemed faculty for Financial Modeling. Here he explains the need and importance of learning FM for every finance student. Whether you're aiming for a career in corporate finance, investment banking, or equity research; FM helps you boost your financial skills in the right way! For more info: https://www.proschoolonline.com/finan...
Views: 976 IMS Proschool
Investment Banking Course - Necessary or Not?
 
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Subscribe Now For More Content - Back on the 10th of June 2019 -- Do I need to learn financial modelling to get into investment banking? In this video I will be answering this question
Views: 1059 High Finance Graduate
Sensitivity Analysis for Financial Modeling Course | Corporate Finance Institute
 
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Sensitivity Analysis for Financial Modeling Course | Corporate Finance Institute Enroll in the full course to earn a certificate and advance your career: http://courses.corporatefinanceinstitute.com/courses/sensitivity-analysis-financial-modeling This advanced financial modeling course will take a deep dive into sensitivity analysis with focus on practical applications for professionals working in investment banking, equity research, financial planning & analysis (FP&A), and finance functions. Course agenda includes: Introduction Why perform sensitivity analysis? Model integration - Direct and Indirect methods Analyzing results Gravity sort table Tornado charts Presenting results By the end of this course, you will have a thorough grasp of how to build a robust sensitivity analysis system into your financial model. Form and function are both critical to ensure you can handle quick changes and information requests when you're working on a live transaction.
Dividend Discount Model - Commercial Bank Valuation (FIG)
 
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Why the Dividend Discount Model (DDM) is used to value commercial banks instead of the traditional Discounted Cash Flow (DCF) analysis. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" There are 3 main reasons why the DCF and the concept of Free Cash Flow (FCF) do not apply to commercial banks: 1. You can't separate operating vs. investing vs. financing activities - the lines are very blurry for a bank, since items like debt are more operationally-related and fund the bank's lending activities. 2. CapEx doesn't represent re-investment in the business, as it does for a normal company - for a bank,"re-investment" means hiring people, doing more lending, etc. 3. Working Capital represents something much different for a bank - the standard definition of Current Assets Excl. Cash Minus Current Liabilities Excl. Debt makes no sense, because for banks that includes tons of investments, securities, other borrowings, etc. so you could see massive swings... What You Do Instead - Use Dividends as a Proxy for Free Cash Flow Why? Because banks are CONSTRAINED by capital requirements - according to the Basel accords (I, II, III), they must maintain a certain "buffer" at all times to cover unexpected losses on their loans... So just like CapEx requirements, Net Income growth, and Working Capital constrain FCF for normal companies, the Tier 1 Capital / Tangible Common Equity / Total Capital requirements constrain dividends for banks. So we'll project a bank's regulatory capital, its asset growth, and its net income, and use those to project its dividends - then, discount, and sum up the dividends and discount and add the NPV of its terminal value. How to Set Up a Dividend Discount Model (DDM) 1. Make assumptions for Total Assets, Asset Growth, targeted Tier 1 (or other) Ratios, Risk-Weighted Assets, Return on Assets (ROA) or Return on Equity (ROE), and Cost of Equity. 2. Next, project Assets and Risk-Weighted Assets. 3. Then, project Net Income based on ROA or ROE. 4. Then, project Shareholders' Equity (AKA Tier 1 Capital) based on targeted capital ratio... 5. And BACK INTO dividends! Different from a normal company's DDM! Set dividends such that the minimum capital ratio is maintained, based on starting Shareholders' Equity and Net Income that year. 6. Flesh out the rest of the model - stats, growth rates, other metrics. 7. Discount and sum up dividends. 8. Calculate, discount, and add Terminal Value so that NPV = NPV of Terminal Value + NPV of All Dividends. 9. Calculate the Implied Share Price and compare to actual Share Price. Is the bank undervalued? Overvalued? What are the clues so far? What Next? Try it with a real company, using its historical financial information. Add more complex / realistic assumptions, based on industry research, channel checks, the bank's own strengths/weaknesses, etc. Add more advanced features - other ways to calculate Terminal Value, more accurate regulatory capital, mid-year discount and/or stub periods, stock issuances / repurchases, multiple growth stages, and so on.
My book on Financial Modeling
 
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#financialmodeling Mastering the art of financial modeling is imperative for those who want to enter the ultra-competitive world of corporate finance, in investment banking, private equity, or equity research. Only those who excel (pun intended) in modeling early on are often the most successful long-term. Having spent a decade in this field, am often asked to give pointers on how does one get initiated into the art and science of financial modelling So, here a primer on Financial Modeling for the uninitiated. # Introduction # Approach to Financial Modeling # Deep Dive into the Construction Phase # Guidelines for Creating an Effective Financial Model # Scenario Analysis and Sensitivity # Financial Modeling—Real Life Illustrations # Case Studies # Cash-Flow-at-Risk (CFaR) Model Kindle version https://www.amazon.in/dp/B07H6CDBH6 (In case you don’t have a Kindle, you can use Kindle for PC, Android and iPhone) Hard copy https://pothi.com/pothi/node/195705
Views: 2016 Anurag Singal
Link the 3 Financial Statements in Excel - Tutorial | Corporate Finance Institute
 
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Link the 3 Financial Statements in Excel - Tutorial | Corporate Finance Institute Download Excel template: https://corporatefinanceinstitute.com/resources/knowledge/modeling/link-the-3-financial-statements-cfi-webinar/ The 3 financial statements are all linked and dependent on each other. In financial modeling, your first job is to link all three statements together in Excel, so it’s critical to understand how they’re connected. This is also a common question for investment banking interviews, FP&A interviews, and equity research interviews. -- FREE COURSES & CERTIFICATES -- Enroll in our FREE online courses and earn industry-recognized certificates to advance your career: ► Introduction to Corporate Finance: https://courses.corporatefinanceinstitute.com/courses/introduction-to-corporate-finance ► Excel Crash Course: https://courses.corporatefinanceinstitute.com/courses/free-excel-crash-course-for-finance ► Accounting Fundamentals: https://courses.corporatefinanceinstitute.com/courses/learn-accounting-fundamentals-corporate-finance ► Reading Financial Statements: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course ► Fixed Income Fundamentals: https://courses.corporatefinanceinstitute.com/courses/introduction-to-fixed-income -- ABOUT CORPORATE FINANCE INSTITUTE -- CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world. By taking our courses you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical with step-by-step instructions to help you become a first class financial analyst. Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections -- JOIN US ON SOCIAL MEDIA -- LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi- Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi Instagram: https://www.instagram.com/corporatefinanceinstitute Google+: https://plus.google.com/+Corporatefinanceinstitute-CFI YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
Financial Modeling for Equity Research
 
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If you are planning a career in Equity Research, Investment Banking, Private Equity, or Asset Management, you are going to have to learn financial modeling. In this video I demonstrate how to use my book "Financial Modeling for Equity Research" to build an earnings model. The book featured in this video is available on Amazon: http://amzn.to/2yHfmlz Terms of Use: https://www.gutenbergresearch.com/terms-of-use.html Facebook: https://www.facebook.com/GutenbergEquityResearch/ StockTwits: http://stocktwits.com/GutenbergResearch Google+: https://plus.google.com/+GutenbergResearchLLC/about Twitter: https://twitter.com/GutenbergRes LinkedIn: https://www.linkedin.com/company/gutenberg-equity-resarch
Views: 12520 GutenbergResearch
Merger Model: Cash, Debt, and Stock Mix
 
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In this merger model lesson, you'll learn how a company might decide what mix of cash, debt, and stock it might use to fund... By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" ... might use to fund a merger or an acquisition - and you'll understand how to determine the appropriate amount of each one in a deal. 2:24 General Order of Funding for M&A Deals 4:49 Cash - How Much Can You Use? 9:56 Debt - How Much Can You Use? 14:08 Stock - How Much Can You Use? 16:32 Exceptions 18:03 Recap and Summary How Do You Determine the Cash / Stock / Debt Mix in an M&A Deal? Very common interview question, and you also need to know it for what you do on the job. 3 ways to fund a company, and to fund acquisitions of other companies: use cash on-hand, borrow the money from other entities (debt), or issue equity (stock) to new investors. But how does a buyer in an M&A deal decide whether it should use… 50% debt and 50% stock vs. 33% debt, 33% stock, and 33% cash vs. 50% cash and 50% debt vs…. And the list goes on. Easiest: Think about the "cost" of each method, start with the cheapest method, use the most of THAT method that you can, and then move to the next cheapest method, and continue like that. GENERALLY: Cheapest: Cash, since interest rates on cash are lower than interest rates on debt, and tend to be low in general. Next Cheapest: Debt, since it is still cheaper than equity and since interest paid on debt is tax-deductible. Most Expensive: Stock, since the Cost of Equity tends to exceed the Cost of Debt… in theory and in practice. To Compare Them: Look at the "After-Tax Yields"… for debt and cash, just take the Interest Rate and multiply by (1 - Buyer's Tax Rate). Stock: Take the buyer's Net Income and divide by its Equity Value (or "flip" its P / E multiple). SO: Always start with cash, use the most you can, then move to debt, use the most you can, and finish up with stock. Cash - How Much is "The Most You Can?" Easy: Company has minimal cash and can't use anything, or it has a huge cash balance and can use all of it. More Common Case: Look at the company's "minimum" cash balance and use the excess cash above that to fund the deal. EX: Company has $500 million in cash right now, but its minimum cash balance to keep operating is $200 million… So it can use $300 million of its cash to fund the deal. How to Determine: Can be tough, but sometimes companies disclose it… ...or you can look back at historical cash balances and make a guesstimate based on that (what was its lowest cash balance in past years?). Debt - How Much Can You Use? So let's say you've now used $300 million of cash to fund the deal… but it's a deal for $1 billion total. How much debt can you use to fund the remainder? $700 million? $300 million? $500 million? Easiest Method: Calculate the key credit stats and ratios for the combined company - for example: Total Debt / EBITDA Net Debt / EBITDA EBITDA / Interest Expense And see what amount of debt makes these look "reasonable", in line with historical figures and also figures for comparable companies. EX: Let's say that if the company uses $500 million of debt, its Debt / EBITDA is 4x. Historically, it has been around 2-3x, and no peer company is levered at more than 3.5x. If that's the case, we'd say that 3.5x - 4.0x is probably the "maximum" (whatever amount of debt that means). Here: We have the Debt / EBITDA and other ratios for the Men's Wearhouse / Jos. A. Bank peer companies. Stock - Now What? Often used as the "method of last resort" because: A) It tends to be the most expensive method for most companies. B) Most acquirers don't like giving up ownership and diluting existing shareholders unless absolutely necessary. So in this example, if we've used $300 million of cash and $500 million of debt, we're still not quite at $1 billion... need an extra $200 million, which we can get by issuing stock. # of Shares = $200 million / Buyer's Share Price. Technically, there's no real "limit," but it would be very odd for a company to give up more than, say, 50% ownership to another company… unless they're very close in size. Exceptions: Buyer has an exceptionally high P / E multiple (Amazon) - stock might be the cheapest! Buyer wants to do a tax-free deal (Google / YouTube) and it's much bigger anyway, so won't make a difference. Companies are similarly sized - stock might always be necessary because cash/debt are implausible (mergers of equals). Summary Which purchase method do you use? MOST relevant when companies are closer in size… doesn't make much difference when the buyer is 100x or 1000x bigger than the seller. Order: 1. Cash - Any excess cash above the company's minimum cash balance. 2. Debt - To the upper range of the Debt / EBITDA of comparables (and other metrics). 3. Stock - For any remaining funding that's required; ideally give up well under 50% ownership.
Advanced Financial Modeling (Investment Banking Course)
 
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For more details please visit our website http://www.ciansacademy.com/
Views: 250 Cians Academy
Financial Modeling Quick Lesson: Trading Comps (Part 1)
 
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In today's lesson, we're going to build the single most common model in investment banking: The trading comparables (comps) model. We will start at the end - by reviewing the model's output sheet, and then delve into the input sheet. To download the Excel template that goes along with this lesson, please go to http://www.wallstreetprep.com/blog/financial-modeling-quick-lesson-trading-comps/.
Views: 32010 Wall Street Prep
How Does the Financial Modeling Differ in Comparison to Investment Banking?
 
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WSO Video Library (100+ full webinars): http://www.wallstreetoasis.com/wall-street-videos Interview Guides: http://www.wallstreetoasis.com/guide-to-finance-interviews WSO Resume Review: http://www.wallstreetoasis.com/wso-finance-resume-review WSO Mentors: http://www.wallstreetoasis.com/wall-street-mentors-finance-mock-interviews WSO Events: http://www.wallstreetoasis.com/events
Views: 157 WallStreetOasis
Investment Banking Institute Financial Modeling Training London
 
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For more information on all our courses and locations, please visit http://www.iBanking.com For detailed information on our London program, please visit http://www.IBtraining.com/schedule-london.php
When are you ready to learn financial modeling for investment banking or private equity?
 
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Subscribe to our newsletter on the front page of www.leveragedbreakdowns.com Take our course: www.leveragedbreakdowns.com/course At what point do you know enough financial theory to begin building practical financial models? You really only need to grasp two fundamental concepts in financial theory before you begin modeling. At the end, this video tests your knowledge to help you determine if you are knowledgeable enough to begin building financial models. Blog: https://leveragedbreakdowns.com/2018/12/31/when-are-you-ready-to-learn-financial-modeling-for-investment-banking-or-private-equity/
WST: Overview of Financial Mkts - Investment Bank Hierarchy
 
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Wall St. Training Self-Study Instructor, Hamilton Lin, CFA introduces the major jargon and finance terminology in finance. What exactly is the sell-side and the buy-side and do they affect the capital markets and why do they have a symbiotic relationship? What exactly is investment banking, sales & trading and research? How is it that asset management is the flip opposite and yet very similar at the same time? Put those questions to rest with this Overview of Financial Markets overview. This course is offered FREE for six months at: http://www.wstselfstudy.com Register for this course FREE at: http://www.wstselfstudy.com/register For more information of the video courses previewed here, go to: http://www.wstselfstudy.com/modules.html Over 80 hours of online, interactive Self-Study Videos! ***SPECIAL YOUTUBE OFFER*** Receive 20% off 5 month purchase at: http://www.wstselfstudy.com Use Discount code: youtube20 Wall St. Training Self-Study provides online, video-based, self-study financial modeling training solutions to Wall Street. Our interactive course modules are Excel-based and specialize in advanced and complex financial modeling, valuation modeling, investment banking, mergers & acquisitions and leveraged buyout training topics. Enhance your skills and master the content required by Wall Street investment banks, M&A, research, asset management, credit, and private equity firms.
Views: 15894 wstss
WST: 4.1 Investment Banking Training - Basic Valuation Methodologies
 
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Wall St. Training Self-Study Instructor, Hamilton Lin, CFA reviews the basic valuation methodologies utilized by investment bankers and professionals to value companies, ranging from trading comps to deal comps to DCF to break-up analysis and other metrics. For more information of the video courses previewed here, go to: http://www.wstselfstudy.com/modules.html Over 80 hours of online, interactive Self-Study Videos! ***YOUTUBE VISITORS ONLY*** 10% off any online course, use Discount code: youtube http://www.wstselfstudy.com Wall St. Training Self-Study provides online, video-based, self-study financial modeling training solutions to Wall Street. Our interactive course modules are Excel-based and specialize in advanced and complex financial modeling, valuation modeling, investment banking, mergers & acquisitions and leveraged buyout training topics. Enhance your skills and master the content required by Wall Street investment banks, M&A, research, asset management, credit, and private equity firms.
Views: 54517 wstss
IBI Investment Banking Financial Modeling LosAngeles Instructor
 
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http://www.iBanking.com Learn how you can get training, interviews and land jobs at investment banks, PE shops and hedge funds in Los Angeles. The Investment Banking Institute is the world's largest financial modeling training program, offering an accelerated career path for both current finance professionals and all individuals seeking to enter the finance industry.
Finance and Investment Banking Training
 
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Want to advance your career in investment banking? http://www.financeinstitute.com/ Learn financial modeling skills and take your career to the next level with the International Finance Institute, the global leader in finance and investment banking training. When you study with IFI, you’ll learn the secrets used by investment bankers at Wall Street’s biggest firms. Moreover, you’ll gain the practical skills needed to advance your investment banking career. You will benefit from the latest financial techniques and receive personal assistance in full-time job placement in investment banking careers. Browse finance jobs and explore banking career opportunities. Search for jobs through International Finance Institute and browse our collection of job listings. You’ll gain skills in financial modeling, comprehensive valuation analysis, cash flow on the sell side and buy side, LBO, and merger (M&A) modeling and you’ll be able to develop your career in investment banking. We combine the experience and dedication of our seasoned investment bankers with ideal investment banking training content. You’ll learn financial modeling from their own experiences about best practices in investment banking, private equity, and corporate finance and strategy. For more information visit our website: http://www.financeinstitute.com/
IBI Investment Banking Financial Modeling Toronto Instructor
 
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http://www.iBanking.com Learn how you can get training, interviews and land jobs at investment banks, PE shops and hedge funds in Toronto. The Investment Banking Institute is the world's largest financial modeling training program, offering an accelerated career path for both current finance professionals and all individuals seeking to enter the finance industry.
NAV Model (Oil & Gas): Production Decline Curve
 
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When you're valuing an E&P (Exploration & Production) company, the Net Asset Value (NAV) Model is the key methodology. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" UNLIKE in a DCF, where cash flow growth is assumed into infinity, in a NAV model you assume the company's cash flows go to $0 eventually as it completely produces all of its reserves and has nothing left. A granular NAV model is complex, but it comes down to a 2-step process: Step 1: Model the company's existing production from wells it already has... and assume a decline rate for the annual production each year, also assuming commodity prices to determine revenue, and linking operating expenses to production and calculating cash flow like that. Step 2: Assume the company drills new wells in its PUD (Proved Undeveloped), PROB (Probable), and POSS (Possible) reserves. The second step involves dozens of sub-steps and assumptions, but here we're just going to focus on ONE small part of this process: estimating the decline rate of a new well the company drills. It starts off at a very high production rate, but then declines quickly within even the first year of its useful life - and we need to estimate the decline rates each year to build the rest of the model. You COULD do lots of complicated math, try fitting hyperbolic or exponential functions, run a regression analysis, etc., but we suggest a much simpler approach here: if the company doesn't disclose data on its decline rates for individual wells, find data from another company operating in the same region and fit it to your company's "average" wells. How to Do That: Step 1: Find the company's key data, such as the EUR per well and IP rate per well in the region you're looking at. Step 2: Now, see if the company discloses data on its own decline rates... if so, you're set! If not, or if it's not enough, find another company operating in the region that discloses more data (EQT here), and go to that company's investor presentations to get the numbers. Step 3: In the first year, assume that production is some % of 365 * IP Rate per Well... because there is a huge drop-off in daily production from Month 1 to Month 12 in that first year. EQT's data shows 45%; we assume 60% here since UPL has a slightly flatter decline curve. Step 4: Copy and paste the other company's decline rates into each year of your decline curve. Step 5: Enter the correct formula for calculating annual production each year AFTER the initial year... here: =MIN(AU129*(1+AT130),$AT$126-SUM(AU$129:AU129)) Want to take either Last Year Production * (1 + Decline Rate) (the first part), or the total remaining reserves in this well (the second part). Step 6: Set up Subtotal / Remainder / Total math and ensure that everything is produced. Step 7: "Fit the data" using Goal Seek and the Factor - multiply each decline rate by a certain factor and use Goal Seek (Alt + A + W + G) to solve for the factor that makes the Subtotal equal to the EUR. Step 8: Build in support for a different EUR by scaling the production up or down in the "Total" column. Step 9: Allocate the production to oil vs. gas. vs. NGLs. Step 10: Complete the Subtotal / Remainder / Total math at the bottom. What Next? Next, we'd complete this process for all the wells the company drills in every region, estimate revenue, expenses, and cash flow for each one, and then aggregate the discounted cash flow values in every region across all reserve types... Which brings us closer to the implied NAV per share, which is what the NAV model is really all about. Stay tuned for more!
Financial Modeling Jobs
 
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For full text article go to : https://www.educba.com/financial-modeling-jobs/ This talks about "What are the Financial Modeling jobs? and how to get job in Investment banks/Large analytic companies/credit rating companies/project finance companies?
Views: 4300 eduCBA
IBI Investment Banking Financial Modeling London Testimonial
 
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http://www.iBanking.com Learn how you can get training, interviews and land jobs at investment banks, PE shops and hedge funds in London. The Investment Banking Institute is the world's largest financial modeling training program, offering an accelerated career path for both current finance professionals and all individuals seeking to enter the finance industry.
Investment Banking Training Financial Modeling and Valuation
 
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Global Investment Banking Analyst/Associate Program Location: London or Remote/Web Video Conferencing The Global Investment Banking Program is an exciting opportunity to gain experience of real world transactions and working knowledge for Investment Banking, Private Equity and Hedge Fund careers. The program will give you solid understanding of transaction concepts and robust practical skills for extensive investment banking work experience. The 5-week program provides the following real world experience: • Analysis of London stock exchange and New York stock exchange listed companies • Preparation of buy and sell side transaction pitches, teasers, and writing confidential investment memo • Excel Financial modeling and valuation of public listed companies by using "Comparable comps" method • Excel Financial modeling and valuation of public listed companies by using " Discounted cash flow" method • Excel Financial modeling and determination of the premium paid by buyer of the business by using "Transaction comps" method • Excel Financial modeling and leveraged buyout of the company by a Private Equity sponsor • Preparation of M&A transaction-ready model with Accretion/Dilution analysis of the deal • Board presentation and closing of investment banking transactions Upon completion of the program you will be prepared to carry out responsibilities of a full-time Analyst/Associate in investment banks and private equity firms. The program statement on your CV and your work experience reference report will enable you to stand out from thousands of other candidates and ensure that you are a strong contender in one the most competitive industries in the world. How to apply: Please send your CV to Please note that a placement fee applies
Views: 28 Teny Trendy
How Financial Modelling can help you make a Step Change in your Career
 
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Have you noticed lately how many finance roles have “financial modelling” listed as a core skill? Financial modelling is now one of the most sought after skills in today’s corporate world and demand for financial modelling skills continues to outstrip supply! Hear from financial modelling expert, Lance Rubin, whose financial modelling focus led his own career journey from Auditor, to Corporate Finance Transactional financial modeller in investment banking to CFO and Senior Strategic Advisor. Lance Rubin is now CEO of Model Citizn, a Melbourne-based financial modelling advisory firm that specialises in building models across a range of sectors including social impact investing, property and financial services for companies and investment trusts. Prior to starting Model Citizn, Lance had over 18 years in financial services and investment banking where he passionately developed his modelling skills across corporate finance, M&A, advisory and finance teams within the banking sector. Lance is also currently the CFO of Banjo, a fintech start-up which provides fast business loans to SME customers.
Views: 1093 plumsolutions
CH 3 Questions - Discounted Cash Flow (DCF) Model, Investment Banking Valuation Rosenbaum
 
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Once you’ve watched the full CH3 video and learned how to build a DCF model, test your knowledge with these 15 questions! I walk through the examples and tie what we learned in the chapter video to these questions. So what did we learn? - How do you project revenues for a DCF model? - How many years do you project cashflows for? - What is the exit multiple method? - What is the perpetuity growth method? - How do you project EBITDA for a DCF model? - How do you project EBIT for a DCF model? - How do you project the NWC for a DCF model? - What is the mid-year convention? - How do you calculate unlevered free cash flow? For those who are interested in buying the Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Joshua Rosenbaum and Joshua Pearl, follow the Amazon link below; https://www.amazon.ca/Investment-Banking-Valuation-Leveraged-Acquisitions/dp/1118656210 If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories. http://seekingalpha.com/author/robert-bezede/articles#regular_articles
Views: 1799 FinanceKid